The question of labour market flexibility (LMF) has long been held to be of pivotal importance in the realm of contemporary economic policymaking. This has been illustrated most recently by the labour reforms (four new labour codes) undertaken by the government. The conceptual-ideological foundations of these reforms consist in the main in the LMF thesis, namely, that dismantling of India’s restrictive and rigid labour laws/employment protection legislation (EPL) are essential for spurring economic growth and productivity, improving manufacturing performance, and enhancing employment outcomes in India’s formal industrial sector (FIS). We provide an overview of the labour regulatory framework in India, and chart the evolution of labour laws. Theoretical perspectives, and conceptual foundations of LMF are examined, followed by ascertaining the extent to which they are applicable in the Indian context. The gulf between de jure and de facto flexibility is also demonstrated. We show—through a theoretical-empirical critique—that contrary to the dominant discourse, a high degree of flexibility was already exhibited by India’s FIS even prior to the introduction of the recent labour law reforms. Moreover, there has been a steady, systematic, and significant increase in labour flexibility in India’s FIS despite the existing EPL framework.